Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Advantages and Disadvantages of Debit Cards

By Sara Subscribe to RSS | January 13th 2012 | Views:
loading
 
  



Some of the advantages and disadvantages of debit cards are as follows-

Advantages-

1.Any consumer who is not credit worthy or finds it difficult to obtain a credit card can more easily apply a debit card, allowing to make plastic transactions.

2.The debit card user can use the limited amount available in his account, thereby preventing the user from racking up debt as a result of its use. Such cards do not charge any interest, late fees, or fees exclusive to credit cards.

3.Debit cards removes the hassles associated with having writing checks as payments like showing ID or give out personal information at the time of the transaction.

4.Besides avoiding check writing altogether, check cards debits funds from the user’s account on the spot. This in turn finalizes the transaction at the time of purchase and unlike a credit card doesn’t require paying any bill at a later date. Moreover a debit card doesn’t require writing an insecure check containing the holder’s personal information.

5.Unlike credit cards, debit cards don’t charge any higher fees or interest rates when cash advanced is obtained. A debit card user can obtain cash from an ATM or a PIN based transaction at no any extra charge, other than a foreign ATM fee.

Disadvantages-

1.Unlike credit cards, debit cards don’t provide its users with any grace period. They are quick and pay now deal.

2.Debit cards provide lower levels of security protection than credit cards. Theft of the users PIN using skimming devices is much easier than with a signature-based credit transaction. If your wallet is lost or stolen, the thief will likely have all the information they need to use your debit card for internet transactions.

3.Debit cards have pre-set spending limits. One can spend only with the amount available in his/her account.

4.Another peril the debit card users face is accidental charges. Many banks charge an overdraft fee, for money transaction and many also set a limit of daily, weekly or monthly transactions you can use your debit card for. And crossing this limit can also result in serious charges to your account.

5.Debit Cards do not allow you to build your credit history.

Debit Card is an electronic card issued by banks to customers. With the help of debt card one can purchases without carrying cash and accessible to all the bank for money transaction as per bank tie up.

Sara - About Author:
Debit card liability could cost you a lot. Contact national asset commercial to minimize you debt.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/advantages-and-disadvantages-of-debit-cards.htm

Related Finance Articles Subscribe to RSS

Hire services of collection agency to get defaulted student loan repayments
Published by Peter Paul on December 22nd 2011 | Finance
Default of student loans is a common problem that is being seen globally. In case of private student...
 
Deal with the collection agency at the time of Default of Student Loan
Published by Peter Paul on December 8th 2011 | Finance
This article focuses on giving you description about default of student loan and how collection agen...
 
How creditors help you in learning more about bill and debt consolidation
Published by Joseph Goins on May 18th 2012 | Finance
People facing high bill problems can find a solution and relief through bill and debt consideration....
 
Stay away from the traps of the student debt
Published by Peter Paul on December 15th 2011 | Finance
The student debt can be avoided at all costs. Here are some tips to stay away from the traps of the ...
 
Dumfries and Galloway debt figures reach record level
Published by Jack Gray on February 1st 2012 | Finance
A report by Citizens Advice Service was brought out a shocking number out of the people who are into...
 
Taking care of debt settlement
Published by Rajkumar Kaushal on May 12th 2012 | Finance
How do you choose good information on debt settlement bankruptcy in debt settlement? This is one que...
 
Making debt settlement easier with groups
Published by Rajkumar Kaushal on May 15th 2012 | Finance
Debt settlement forms and articles have become what a lot of people are making use of when it comes ...
 
Profits of using TAXAS debt relief
Published by James Blee on February 14th 2012 | Finance
In economics language, Debt relief means to get relief from all the debts. Today, In USA debt relief...
 
Simply what does debt elimination signify and how can debt management programs help you become free of debt?
Published by Deby Suportie on April 4th 2012 | Finance
Debt elimination is a service given by debt management plans to provide assistance to those who are ...
 
Consumers of debt settlement
Published by Rajkumar Kaushal on May 17th 2012 | Finance
Exceptionally debt management and firms Debt information has become synonymous with keeping people. ...
 
How to manage your debt
Published by Rajkumar Kaushal on June 23rd 2012 | Finance
Getting debt consolidation during settlement of debt is very important. Cashless policy where credit...
 
What precisely does Credit card debt help signify and just how can it benefit me?
Published by Deby Suportie on April 2nd 2012 | Finance
Credit card debt help is a support offered by lending companies to help those who are struggling wit...
 
I am in a debt management plan and have been made redundant – what can I do?
Published by James Falla on November 28th 2011 | Finance
With the possibility of wages being reduced and jobs being lost as a result of the government cuts, ...
 
Preferred Stock- Personal debt and Equity
Published by Isol on August 13th 2012 | Finance
Preferred stock options executes some degree associated with title in a company but by natural means...
 
Resolution and reports on debt settlement
Published by Rajkumar Kaushal on April 30th 2012 | Finance
In the world of Debt Settlement report today, there are lots of programming from computer that is ta...
 
Bank debt settlement in America
Published by Govindsingh on June 26th 2012 | Finance
For you to get out of debt settlement bad during settlement of debt in bank is very important. Cashl...
 
Bad credit debt consolidation UK
Published by Fresh Finance on January 19th 2012 | Finance
The debt consolidation entails taking out one mortgage to pay off many others. This is done to prote...
 
Understanding Christian and credit card debt settlement organizations
Published by Julia Roger on December 14th 2011 | Finance
With increasing debts among the majority of the population, people have started to seek professional...
 
Eldridge Financial Blog: UK in recession again as recovery is ‘paralyzed’ by the European debt crisis, forecasted.
Published by Eldridge Blog on February 18th 2012 | Finance
Britain is once again suffering a recession and unemployment risks coming close into three million t...
 
Before you make proposal for debt settlement
Published by Rajkumar Kaushal on April 27th 2012 | Finance
How would the world look without making debt Settlement proposal? The answer is not far-fetched beca...